wwe  COUNCT

MAR j- 1976

TO: Mayor and Council : February 27th, 1976

FROM: Finance Committee

The Finance Committee met on Wednesday, February 25th, 1976 and discussed
the following items:

1. _ A request from the Canadian Red Cross Society for support in their
appeal to raise funds for the people of Guatemala.

. The Finance Committee endorses this appeal for funds .and would ask
that Council pass a resolution endorsing the appeal and urging all industry,
professional groups, organizations and residents to Support this appeal for
for funds.

2. fhe Committee considered a suggestion from Alderman Mabbett that we
review the amount of interest allowed on prepaid taxes.

At the present time the City makes an allowance of 7% for any early
payment of taxes. The maximum we can allow under the Act is 8%. Our past
experience with prepayment is that it does not produce tremendous income,

There is only about $25,000.00 worth of taxes paid in advance each year, and
.an increase in the interest rate is not going to drastically improve prepayment.
The Committee, however, feels that the interest rate Should be revised to the
8% maximum as set out in the Act and that this increase be applied for the

1977 taxation year. Much of the prepayment for the 1976 year has already’

taken place at the 7% rate. .

The Committee recommends that a By-law be prepared to increase the rate
of interest payable on prepaid taxes from 7% to &% for 1977,

. 3. Alderman Mabbett had also suggested that we review the due date for the

"payment of Water and Sewer Rates. The Committee discussed this and felt that

“there is no hardship on individuals to meet the Payment date and there may be
if the payment date is advanced to, say, March 3lst or some other earlier date,
‘when residents may be involved in paying car insurance or income tax. The Ci ty
generally collects a certain proportion of the Water and Sewer Rates immediately
‘upon billing and moving up the benalty date may improve earlier collections,
however, the Committee felt it was not necessary to move the penalty date up
‘for the reason of early collections alone. They felt that the change of penalty
dates might be a yreater inconvenience to taxpayers, rather than a convenience to

the City.

Accordingly, the Finance Committee cannot recommend a change in the present
benaity dates for the Sewer and Water accounts.

4. The Committee discussed the Lease with Lincoln Projects for Library space
and Mr. Horner has been asked to submit his Lease Document at which time the
Committee will give the matter full consideration,

LDP /w

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